Question

HOW IS CORPORATE SOCIAL RESPONSIBLITY REPORTING RELATED TO FINANCIAL REPORTING AND ANALYSIS

Answer 1

Corporate social responsibility (CSR) report is a periodical report published by the companies to depict or show their their corporate social responsibility actions and its results.

Financial Reporting and analysis refers to the practice of analysing financial statements of an entity for decision making purpose. Financial Reporting is intended to provide stakeholders an understanding of how company is performing over a specified period of time.Financial statements are used by various users .It can be both internal and external users like employees,government,lenders, suppliers,public and so on.So it is very essential for the organisation to prepare financial reports and to have a proper analysis.

By maintaining a proper CSR report, the organizations allow the stakeholders to know how they integrate the principles of sustainable developments. The stakeholders can measure what the organization contributes to the society and what are its impacts. Also the organization can properly communicate to the stakeholders what are their goals that they aim to provide for the society 's welfare. So CSR reports are also used by various users . For example, the government uses the CSR reports to check whether the organisation behaves according to the rules and norms of the society.

Corporate social responsibility reporting and financial reporting and analysis are closely related. Both of them are intended to provide information to the stakeholders for various purposes. Those organizations which have adopted CSR have to disclose more information about the environmental and social activities in their financial report.Also financial reports provide an understanding on whether the organisation has a possibility to increase their CSR activities.